Tata Motors Share Price: Tata Group-backed automobile giant, Tata Motors' share price has skyrocketed by nearly 5% in the five consecutive sessions. On March 18 alone, the auto heavyweight stock climbed nearly 3% and neared the Rs 700 mark. Following the latest upside, the stock has recovered its early-2025 losses significantly. The latest to recommend Tata Motors will be HSBC which has upgraded its stance to BUY on the large-cap.
HSBC Target On Tata Motors:
Due to undemanding valuations and margin growth triggers, brokerage HSBC has upgraded its stance on Tata Motors to BUY from earlier HOLD. The broker has also assigned a target price of Rs 840 on the stock.
The brokerage expects Tata Motors' margins to expand driven by a reduction in discounts and warrant costs in its luxury brand Jaguar Land Rover coupled with improvement in the company's domestic SCV segment. Such key triggers are expected to improve Tata Motors' pricing power and operational efficiency.
HSBC finds Tata Motors' share attractive despite valuation compression over the past 2-3 quarters. For FY26, HSBC expects EV/EBITDA at 1.8x, which as per the brokerage, is at the lower end of Tata Motors historical trading range.
That being said, HSBC believes the current valuation of Tata Motors is reasonable and signals a potential upside ahead.
Also, as per the Trendlyne data, the consensus recommendation from 30 analysts for Tata Motors Ltd. is BUY. The average 1-year target price is at Rs 849.57, hinting at nearly 25% potential upside.
However, Tata Motors stock has potential to jump to as high as Rs 860. In its latest report, brokerage JM Financial said, "While near-term growth for Domestic CV & PV is expected to be muted, we expect underlying demand environment to improve from FY26 esp. for domestic CV (led by revival in government capex) and domestic PV (led by new launches, enhanced marketing). We maintain BUY with unchanged with Mar'26 SoTP of INR 860 (standalone / JLR valued at 12x /2.3x EV/EBIDTA). Recovery in underlying demand remains a key monitorable."
Tata Motors Share Price:
After market hours of March 18, the auto stock is at Rs 679.80 apiece, up by 2.9% on BSE, with market cap of Rs 2,50,247.24 crore. The stock is now merely Rs 20 away from hitting Rs 700 mark. Tata Motors 52-week high and low is at Rs 1,179.05 apiece and Rs 606.20 apiece respectively.
The stock zoomed by 4.98% in five consecutive sessions. However, year-to-date, the stock is down by 9%, which is lesser compared to its double-digit percentage decline before March month. The stock's price-to-equity ratio is at 40.37x, while return on equity is around 20.24%.
Tata Motors Commercial Vehicles Price Hike:
The company has announced to increase its prices of commercial vehicles by 2% with effect from April 1, 2025. It said, "The price increase is to offset the rise in input costs, and will vary as per individual model and variant."
Tata Motors Acquisition:
The company has also announced the incorporation of a wholly-owned subsidiary, viz., "Tata Motors Digital.AI Labs Limited".
Tata Motors Split:
The company is on the journey to split its business. The company's demerger will be of two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR, and its related investments in another entity. As part of the demerger plan, Tata Motors shareholders will get 1 share of TMLCV with a face value of Rs 2 each for every 1 share held in the company. This makes the business split ratio 1:1.
About Tata Motors:
Part of the USD 165 billion Tata group, Tata Motors Limited, a USD 44 billion organization, is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks, and buses, offering an extensive range of integrated, smart, and e-mobility solutions. With 'Connecting Aspirations' at the core of its brand promise, Tata Motors is India's market leader in commercial vehicles and ranks among the top three in the passenger vehicles market.
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